[73shark]

Ordered my 2017 HR 350 Ecoboost in Sept 2016 for dealer invoice less factory rebates.

 

[73shark]

They showed it to me. Can't verify it but it was less than MSRP.

 

[73shark]

Found the dealer printout and the invoice price was 5.8% off MSRP. I realize that's not what they paid for it but it's about the same as a GM Supplier discount.

 

[73shark]

I've paid less than invoice on the last 7 cars I have bought. At invoice they are making money. Whether it relates to net profit depends on how well they manage their dealership.

Edit: If the margin on a new vehicle was 5.8% they wouldn't be in the business of selling cars. There are extra margins, holdbacks, volume discounts and rebates to the dealer that also come into play.

No news here. They make money selling at employee discount for the reasons you stated. But the service dept. is where the real money is.